3 Insurers Set to Continue Their Winning Streak in 2025

Industry Performance - The insurance industry has outperformed the Zacks S&P 500 composite and the Finance sector year-to-date, with a rally of 27.8% compared to 25.7% for the S&P 500 and 18% for the Finance sector [1] Future Catalysts - Profitability for property and casualty companies is improving due to rate hikes aimed at controlling claim costs, leading to better combined ratios and higher premiums [2] - The global life insurance market is projected to reach $4.8 trillion by 2035, driven by high demand for savings products, aging demographics, and the rise of the middle class in emerging markets [3] Consumer Trends - Providing personalized and seamless experiences for consumers, particularly younger demographics influenced by social media, is expected to benefit insurers [4] Stock Recommendations - Three insurance stocks with strong potential include Allstate (Zacks Rank 1), Primerica (Zacks Rank 2), and Unum (Zacks Rank 2) [5] Company Insights - Allstate's earnings have consistently surpassed estimates, with a projected 2025 earnings of $19.17 per share, reflecting a 17.9% improvement from 2024 [6] - Primerica's 2025 earnings estimate is $20.71 per share, indicating a 7.2% increase from 2024 [7] - Unum's 2025 earnings estimate stands at $9.03 per share, suggesting a 5.7% rise from 2024 [8] Industry Trends - The insurance industry is benefiting from prudent underwriting, increasing rates in the auto business, and a focus on consumer-centric products [9] - The adoption of AI in underwriting and claims processing is expected to drive growth for non-life insurance companies, with potential annual global premiums of up to $4.7 billion by 2032 [10] - The year 2025 is anticipated to see moderating rate increases, with improved underwriting profitability for property and casualty insurers [11] Embedded Insurance - Embedded insurance is projected to exceed $722 billion in premiums by 2030, enhancing accessibility and distribution for insurers [12] Company-Specific Growth - Allstate is expected to benefit from premium growth and strong underwriting performance [13] - Primerica is gaining from strong policy sales and an expanding sales force [14] - Unum is experiencing strong premium growth across key segments, supported by favorable benefit experiences and improved net investment income [15]